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DENVER (KDVR) — Colorado voters approved Proposition 116, The Associated Press reports.

The measure will lower Colorado’s income tax rate for the first time in about 20 years. The rate will drop from 4.63% to 4.55% for individuals and businesses.

Republican state Sen. Jerry Sonnenberg of Sterling backed the proposal after his previous two efforts stalled at the state Capitol.

“Now more than ever, people need tax relief. People have been out of work, businesses have been shut down. This is what they need to be able to move forward,” Sonnenberg said.

The cut is projected to cost the state $154 million in revenue for fiscal year 2021-2022, which is equivalent to about 1.2% of expected General Fund revenue.

According to the state’s official ballot guide, people making $50,000 annually would save $40 a year with the cut.

Opponents of the measure argued it will “compound the impact of significant budget cuts already being made to education, transportation, health care programs, and other state services as a result of the current economic crisis.”

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